Surgical Innovations confirms its plans to create health technologies hub
SURGICAL Innovations has confirmed it will develop a state of the art research and development facility and clinical training centre in Leeds.
The centre is expected to create more than 300 jobs in the Leeds City region over the next 12 years.
In January, the Leeds-based company, which makes specialist equipment used in minimally invasive surgery, announced that it had formally signed the Regional Growth Fund Final Grant offer letter worth £5.05m. Today, the board has formally approved the budget for the development of a new facility.
Surgical Innovations announced the news this morning in a trading update for the six months ended June 30 2013. It said it has seen its pre-tax profit more than triple as it announced a strong first six months of the financial year.
Revenues were 28% ahead of the same period last year at £3.88m (H1 2012: £3.02m) with an adjusted EBITDA for the period of £1.14m (H1 2012: £0.98m), a 16% improvement on the previous period. Profit before tax for the period of £567,000 (H1 2012: £181,000) has more than tripled. The group said it continues to trade in line with market expectations for the full year.
The Yorkshire firm said three site locations, all situated on the Eastern side of Leeds, are being assessed for its new 58,000 sq ft facility, which will incorporate a 10,000 sq ft Clinical training centre.
It said: “The directors believe that a phased move to the new site will not have any impact on short-term trading or profitability, but it is expected to bring significant operational efficiencies and the new building will be planned specifically to optimise SI’s production capabilities.
“The clinical training centre will act as a catalyst for innovation enabling international surgeons to develop best clinical practice in new areas of MIS, use and critique SI’s latest medical device technologies and importantly enable SI to expand its development programme into new areas of MIS.
“The centre will combine classic training methods of laparoscopic work stations with cadaveric and dissection facilities and a simulated operating room. It is envisaged that SI will develop one of the premier facilities in the UK that will support the growing demand for clinical training both from home and abroad.”
The total cost of the building project will be funded through the RGF grant and the remainder by a commercial bank mortgage, with an estimated completion date of July 2015.
The company will announce its interim results for the six months ended June 30 2013 in September.
